Invest or pay off debt.
2007-09-27 09:49:10 · 9 answers · asked by Anonymous in Business & Finance ➔ Investing
Pay off debt.
2007-09-27 09:51:01 · answer #1 · answered by PJ 5 · 0⤊ 1⤋
As a general rule its always better to pay off debt, however if you have a very low interest rate and a good investment strategy that might not be the case. You should run through the scenarios of what the ultimate cost/gain would be based on the best estimates that you have. Of course if they aren't estimates rather hard numbers the choice is easier.
usual caveat - do not rely on any advice given on a yahoo board, i'm not a professional investment expert.......
2007-09-27 16:53:37 · answer #2 · answered by Invaded 2 · 0⤊ 0⤋
well it kind of depends... how much interest is accruing on your debt? and if you invest will you be making more interest than the interest accruing on your debt? What kind of debt are we talking about? High interest debt or not??
So if the interest on your debt is large pay that off but if it is minimal then invest in something where you will earn more interest than being charged interest, so you can pay off the debt.
2007-09-27 16:55:52 · answer #3 · answered by abs 5 · 1⤊ 0⤋
That which results in the highest net yield .
If the investment would earn more % than the % rate on the debt > invest .
If the debts % rate is more than you could earn on an investment > pay off debt .
Always , that which yields the highest net return .
>
2007-09-27 16:52:52 · answer #4 · answered by kate 7 · 0⤊ 1⤋
Pay off debt first then invest.
The investment will always be there.
2007-09-27 16:51:07 · answer #5 · answered by Jenn 2 · 0⤊ 1⤋
You need to do both simultaneously. You need to invest some money, but pay off your debt too. Dont put too much into the investment, especially if it's the stock market and it's unpredictible. I personally save a percentage of my money each month after I have set aside my fixed amounts for bills, since they come first. However, I dont solely concentrate on the bills. Hope it helps.
2007-09-27 16:53:07 · answer #6 · answered by Ashley 2 · 1⤊ 1⤋
go to which one is higher. for example, if your CD can give 5% p.a. return, eventhough you have debt that charge 3% p.a. you can still profit from that 2% p.a. interest. in financial market, this is known as leverage. this mostly happen to real estate market, where investors prefer to have bank loans than pay cash all by themselves. remember, not all debts are bad debt. debt that can generate money is not one of it.
2007-10-01 05:20:48 · answer #7 · answered by BigBen 5 · 0⤊ 0⤋
Pay off debt. Highest interest first.
2007-09-27 16:52:24 · answer #8 · answered by chillgirl76 2 · 1⤊ 1⤋
Pay off debt first, if you can not do that, then declare the
bankrupt.
Then invest your money to ISA.
2007-09-27 17:03:03 · answer #9 · answered by standard69 2 · 0⤊ 1⤋